Which real estate scams must you be aware of as a homeowner

Lake Properties                  Lake Properties

Lake Properties                   Lake Properties

1. Rental Scams

These are some of the most common. A scammer will advertise a property for rent, usually with beautiful pictures and an unbelievably low price. When you contact them, they’ll spin a story about being out of town or too busy to meet, then ask you to pay a deposit upfront to “secure” the property. The moment you pay, they disappear — and often the property was never theirs to begin with.
👉 Tip: Always view the property in person and never pay until you’ve signed a legitimate lease.

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2. Title Deed / Ownership Fraud

This one’s scary because it targets your actual property. Criminals steal your identity, forge signatures, and transfer the ownership of your home without you knowing. Suddenly, someone else is trying to sell or take a loan against your house.
👉 Tip: Regularly check with the Deeds Office to confirm your property is still registered in your name.

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3. Wire Transfer Scams

When you’re buying a home, you’ll need to transfer a big chunk of money, usually through your attorney’s trust account. Scammers hack into emails, change the banking details in the instructions, and trick you into transferring funds straight into their account.
👉 Tip: Always confirm banking details with your attorney by phone or in person before transferring funds.

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4. Foreclosure “Rescue” Scams

If you’re struggling to pay your bond, you may be vulnerable to smooth-talking fraudsters who promise to “help” save your home. They’ll ask for large upfront fees or get you to sign documents you don’t fully understand — sometimes even tricking you into handing over ownership of your house.
👉 Tip: If you’re in trouble, talk directly to your bank before anyone else.

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5. Fake Investment Opportunities

These scams are wrapped in shiny promises: luxury developments, beachfront apartments, or plots of land in “fast-growing” areas. You’re shown brochures, photos, even contracts. The catch? The project either doesn’t exist or will never be built.
👉 Tip: Do your homework. Check building plans with the municipality and confirm that the developer is registered with the NHBRC (National Home Builders Registration Council).

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6. Overpayment Tricks

You might come across a “buyer” or “tenant” who sends you a payment that’s higher than what’s due, then asks you to refund the difference. Their original payment later bounces, leaving you out of pocket.
👉 Tip: If someone pays too much, don’t refund until the funds are 100% cleared with your bank.

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7. Fake Agents

Some fraudsters pretend to be real estate agents. They show you pictures of properties, arrange “viewings” that never happen, and collect deposits or fees before vanishing.
👉 Tip: Always ask for an agent’s Fidelity Fund Certificate (FFC) — a legal requirement in South Africa for any practicing estate agent.

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8. Inflated Property Flips

Scammers buy cheap properties, do the bare minimum (like a coat of paint), and then push them onto unsuspecting buyers at massively inflated prices, often supported by dodgy valuations.
👉 Tip: Compare recent sales in the area and don’t rush into buying just because someone says it’s a “hot deal.”

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🌟 Lake Properties Pro-Tip:
Real estate is one of the biggest financial commitments you’ll ever make. Always slow down, verify everything, and ask the “awkward” questions. A genuine seller, agent, or developer will never pressure you to pay quickly or avoid paperwork. If you’re not sure, rather walk away — losing out on a deal is better than losing your life savings.

If you know of anyone who is thinking of selling or buying property,please call me 

Russell 

Lake Properties 

www.lakeproperties.co.za 

info@lakeproperties.co.za 

083 624 7129 

Lake Properties                   Lake Properties

What should I look out for,in an offer to purchase on a house?

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Lake Properties                      Lake Properties

• Purchase price (headline number) — obvious, but don’t evaluate it alone.
• Deposit (earnest money / good-faith payment) — amount, payable when, and where it will be held.
• Financing clause — is the offer cash, bank-preapproved, or subject to finance approval? Look for bank pre-approval letter vs. mere “intention to apply.”
• Suspensive conditions / contingencies — finance, sale of buyer’s property, building inspection, etc., including the exact time periods to satisfy those conditions.
• Occupation / possession date — who lives there and when; is occupation on transfer or earlier? Any rental to buyer before transfer (occupational rent)?
• Fixtures & fittings schedule — what the buyer expects to be included (curtains, fridge, alarm, gates, light fittings).
• Repairs and inspection outcomes — if the buyer requests repairs or credit, are quotes attached? Who pays?
• Who pays costs — who pays transfer duty, bond registration, conveyancer fees, occupational rent, rates clearance? (In SA buyers usually pay transfer & bond costs, but confirm.)
• Special clauses — “voetstoots” (sold as-is), seller guarantees, leasebacks, seller financing, or occupancy before transfer.
• Buyer identity & capacity — individual, trust, company — does the signatory have authority?
• Timing & expiry of offer — how long is the offer valid?

2) What each item actually means (and why it matters)

• Price vs. net proceeds
  The headline price is not what you take home. Consider: agent commission, repairs you’ll accept, rates clearance, capital gains implications, and transfer costs (usually buyer pays, but if you agree to any contribution that affects your net).
• Deposit size & security
  Bigger deposits = stronger commitment. Also check whether deposit is a bank guarantee, cash into the agent’s trust account, or conditional. Confirm when it becomes non-refundable (if buyer defaults).
• Cash vs. bond (mortgage)
  Cash shortens the process and is lower risk. Bond approvals add risk — banks can decline or take longer. A genuine, current bank pre-approval letter reduces the risk.
• Suspensive conditions
  Each condition is a potential reason for the sale to fall through. “Subject to sale of buyer’s property” is especially risky and can add indefinite delay. Limit the number and duration of conditions.
• Occupation before transfer
  Allowing a buyer to occupy before transfer creates liabilities (insurance, damage, occupational rent). If you accept occupation before transfer, get a formal written occupation agreement, proof of insurance, and indemnity.
• Voetstoots / Disclosure
  “Voetstoots” means the buyer accepts the house as-is except for deliberate concealment. It protects sellers for unknown defects, but doesn’t cover fraud. Consider disclosing known defects in writing to avoid later disputes.
• Company/trust buyers
  If the buyer is a company/trust, ask for resolution/signed authority and proof that funds can be released — these sales can require additional documentation and take longer.
• Timing
  Shorter transfer/occupation timelines may suit sellers who want to move fast. But aggressive timelines might not suit buyers who need bond approval; keep realistic but advantageous deadlines.

3) Red flags (stop & probe before accepting)

• Very low deposit (or none).
• Many suspensive conditions (especially “subject to sale of buyer’s house”).
• No evidence of financing / preapproval.
• Buyer wants immediate occupation before transfer without a solid occupation agreement.
• Buyer is an unfamiliar company/trust and can’t supply director/trustee resolution or proof of funds.
• Verbal changes or side agreements not captured in the written offer.
• Ambiguous wording (dates, who pays what, what’s included).
• Requests for the seller to carry a loan or to provide vendor finance unless you’re comfortable and have legal advice.
• Extremely tight deadlines that might force you to accept poor paperwork.

4) Practical negotiation moves & sample wording

Tactics:

• Prioritise offers that minimise conditionality and maximise certainty (cash, big deposit, pre-approved).
• You can accept an offer subject to changes — issue a counter-offer that amends problem clauses.
• Keep the property on the market (subject to agent instructions) until the buyer’s conditions are fulfilled — unless you explicitly take it off with clear legal protection.
• Use the deposit and shorter suspensive timeframes as leverage.

Sample counter-offer language (short, practical):

• Increase deposit / shorten finance period:
  “Accepted at R________, subject to a 7.5% deposit payable into the agent’s trust account within 3 business days and bank finance approval within 14 days (previously 21). Occupation on transfer unless otherwise agreed in writing.”
• Remove subject-to-sale clause:
  “We accept provided the sale is not subject to the buyer selling their property. If buyer needs to sell, deposit must be 10% and finance approval timeframe reduced to 10 days.”
• Occupation / insurance protection:
  “Occupation prior to transfer is only permitted under a signed occupation agreement and proof of indemnity insurance naming the seller and proof of the buyer’s homeowner insurance submitted to the conveyancer.”
• Repairs / credits:
  “Seller to repair leaking roof prior to transfer up to R_____. Any additional works requested to be covered by buyer unless authorised by seller in writing.”

5) Quick offer evaluation checklist (printable)

• Offer price: ______
• Deposit amount & type (cash/guarantee): ______
• Proof of funds / preapproval provided? Y/N — attach doc
• Suspensive conditions (list & days to satisfy): ______
• Occupation date & terms: ______
• Repairs requested: ______ / Estimated cost: ______
• Buyer structure (individual / trust / company): ______ / Proof of authority? Y/N
• Transfer & bond costs to be paid by (buyer/seller): ______
• Offer expiry date: ______

6) Simple comparative scoring (out of 100)

Weighted example — multiply & total to compare offers quickly:

• Price (35 points) — score relative to asking/market.
• Deposit strength (20 pts) — size + type.
• Finance certainty (20 pts) — cash / preapproved / subject to bank.
• Conditions (10 pts) — fewer = higher score.
• Occupation & timing (10 pts) — suits you = higher score.
• Repairs / credits requested (-5 to +5) — will cost you or save time.

Example: Offer A: Price 32/35, Deposit 18/20, Finance 15/20, Cond 8/10, Timing 8/10, Repairs -2 → Total 79/100.
Use this to compare both numeric and non-numeric strengths.

7) Paperwork & verification to request immediately

• Written offer on a standard sale agreement form (not text messages).
• Buyer ID and proof of residence.
• Bank pre-approval letter or proof of funds for cash offer.
• Authority documents for company/trust buyers.
• Written list of included items (fittings & fixtures).
• Confirm who will be the conveyancer and their contact details.
• Confirm where the deposit will be held (trust account, conveyancer’s trust).

8) When to accept, when to counter, when to say no

Accept if: clean offer (good deposit, cash or solid pre-approval), few conditions, timeline that suits you, and buyer identity is verified.
Counter if: price is good but one or two items worry you (deposit, timing, certain condition) — fix those items.
Say no if: buyer is highly conditional, deposit is tiny, or they can’t prove funds/authority — unless you want to keep the house on the market and use their offer to negotiate with others.

9) Practical logistics after acceptance

• Give the signed offer to your conveyancer immediately and instruct them to start transfer process.
• Request the buyer’s conveyancer contact and confirm who holds the deposit in trust.
• Keep copies of all correspondence and bank slips.
• Coordinate practical items: rates clearance, outstanding accounts, keys, meter readings, and any agreed repairs.

10) Common seller mistakes (avoid these)

• Taking the house off the market too early without a secure deposit/payment.
• Relying on verbal promises.
• Signing away rights in the sale agreement without legal review.
• Accepting occupation before transfer without indemnity and proof of insurance.
• Not getting clear proof of buyer’s financing or authority.

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Lake Properties Pro-Tip

Always have your conveyancer review the exact written offer before you sign or accept. A small change in wording (dates, who pays what, or an ambiguous condition) can change your legal obligations significantly. If you’ve got more than one solid offer, ask each buyer for proof of funds and a short deadline to remove conditions — the one who demonstrates certainty and speed usually wins.

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What debit should you pay off first and increase your credit score in South Africa

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Lake Properties                       Lake Properties
Here’s a more detailed breakdown of how to prioritize and pay off debt to improve your credit score in South Africa, with explanation of why each step matters:

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1. Prioritise Credit Card Debt

Why it matters:
Credit cards are revolving credit, meaning your balance can go up and down. South African credit bureaus (like TransUnion or Experian) factor in credit utilisation ratio — how much of your credit limit you’re using. If you're using over 30% of your limit, your score drops.

What to do:

• Focus on reducing your balance to below 30% of your credit limit.
• Pay more than the minimum amount due.
• Avoid maxing out your card — even if you pay it off monthly.

Example:
If you have a R10,000 credit limit, try to keep your balance below R3,000.

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2. Bring Any Arrears or Missed Payments Up to Date

Why it matters:
Your payment history is the biggest factor in your credit score — one late payment can stay on your report for up to 2 years, even after it’s paid.

What to do:

• Contact creditors and settle any missed or overdue payments.
• Set up debit orders or payment reminders to avoid future missed payments.

Tip: If you can’t pay in full, negotiate a repayment plan with the credit provider or debt counsellor.

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3. Pay Off Store Accounts and Personal Loans Strategically

Why it matters:
These installment accounts affect your score, especially if you're close to your original loan amount or miss payments.

What to do:

• Focus on small balances first (known as the “snowball method”) to reduce the number of open accounts.
• Alternatively, use the avalanche method — pay off the debts with the highest interest rates first to save money.

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4. Settle Judgments or Collection Accounts

Why it matters:
A court judgment or debt handed over to a collection agency shows you've failed to pay as agreed, which significantly lowers your score and stays on your record for 5 years or more.

What to do:

• Pay the amount owed or negotiate a settlement.
• After payment, request a paid-up letter or confirmation of settlement.
• Submit that letter to credit bureaus to update your record.

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5. Avoid Taking New Credit While Rebuilding

Why it matters:
Each time you apply for credit, it creates a “hard inquiry” on your report, which temporarily lowers your score. Too many inquiries in a short time signal desperation or financial stress.

What to do:

• Only apply for credit when necessary.
• If you need to build your score, consider using a low-limit secured credit card or account, but manage it carefully.

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6. Check and Monitor Your Credit Reports

Why it matters:
Mistakes on your credit report (wrong balances, settled accounts marked as unpaid, etc.) are common and can unfairly hurt your score.

What to do:

• Get one free credit report per year from each major bureau: TransUnion, Experian, XDS, and Compuscan.
• Dispute any inaccuracies directly with the bureau or the credit provider.

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Summary of Debt Repayment Order (South Africa):

Priority	Type of Debt	Why Prioritize?
1	Credit cards	High impact on utilization and score
2	Overdue/missed payments	Payment history heavily affects your credit score
3	Loans/store accounts	Regular repayments build credit over time
4	Judgments/collections	Legal black marks severely hurt your score

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